What You Didn’t Know About Canceling Your Health Insurance Through Healthcare.gov

I recently moved into a new part-time position which then became a full-time position and thereupon provided benefits including health insurance. Up until that point Sheila and I had been being hit with fairly large insurance premiums every month, so I was quick to call the insurance provider and request cancellation.

I was surprised when they told me that I’d have to contact Healthcare.gov to cancel my policy. Annoying, but not the end of the world and my guess is it is an accountability measure to ensure that insurance companies don’t cancel policies of individuals without their consent.

I called Healthcare.gov (1-800-318-2596) and asked to cancel my plan effective the 19th of June. I was assured this would be done. Great! I figured I’d have a nice partial refund check sent to me in a few weeks time.

I did receive mail from the insurance company – but it wasn’t the check I had been expecting. Instead I received a bill for July’s premium.

I called Healthcare.gov back and was informed that there was a thirty-day period between when they received a cancellation and when they submitted it to the insurance company. I balked. Thirty days? This should happen (and technologically is feasible) instantaneously!

I pushed back a bit and when they stood firm I acquiesced on one condition – they provide me with documentation of the thirty-day period. At this point I was given a case worker and then I waited to hear anything. Eventually I did hear – they had rolled back my insurance cancellation date to June 30th. This meant I no longer owed the insurance company anything but also that I would not receive a refund.

Today I called in again and was told that there was a 14 day waiting period. That they were sorry I hadn’t been told this before I canceled.

I again request documentation for this new shorter period. They suggested there might be some on the website…I found it: Cancel your Marketplace plan.

I could have canceled 14 days before the actual date I wanted the cancellation to occur if I had known about this 14 day period. I’m sure this may have been tucked away in some long-winded legalese that I reviewed at some juncture or another. I’m not happy about it, but it is a real policy.

Here is a screenshot of the cancellation policy as found on Healthcare.gov

The reason I share all this is to hopefully help others avoid losing out on premium refunds or being billed after their desired cancellation date.